New information published on Coronavirus Job Retention Scheme

The Government has published more detailed information on the Coronavirus Job Retention Scheme for employers.HMRC logo

The guidance provides more information on;

  • Who will and will not be eligible for the scheme
  • How to calculate the support for those with zero hour contracts or variable earnings
  • The impact on National Minimum Wage and Living Wages (NMW/NLW)
  • Training, volunteering and second jobs
  • The evidence employers will need to be able apply for the grant

Concerns exists about how any childcare funding from government sources might impact on eligibility for the scheme and NDNA is raising this urgently with the UK and devolved governments.

Purnima Tanuku OBE, Chief Executive of NDNA, said: “We have seen the new guidance from the Government in relation to the Coronavirus Job Retention Scheme. This will at least give businesses some more clarity about how the scheme will work although questions still remain about annual leave and the flexibility nurseries will need to be able to stay open.
“We are very concerned about references to those that receive public funding to provide services necessary in the response to COVID-19 been expected not to furlough staff. I have requested urgent clarification from the Treasury, Department for Education and devolved governments in relation to income providers may receive from funded childcare schemes. This does not cover providers’ costs but may compromise their eligibility for accessing the job retention support for their staff. 
“Nurseries provide essential services for doctors, nurses and other key workers so they are able to continue working. Once business as usual resumes, the childcare sector will be needed and any damage now will limit their ability to help later. 
“We continue to stress to Ministers and officials the strain the sector is under and we are fighting to make sure it is not irreparably damaged. We hope governments will recognise this and be flexible with the early years and childcare sector.”

If you are putting any of your employees on the staff retention scheme, both the employee and employer must sign a letter of agreement. Any members who are signed up to Citation can receive a template letter from them. Acas is giving out guidance as to what should go on this letter:

  • Reason for the furlough
  • Date it will commence
  • How you will stay in touch with your employee (eg personal email, letter)

This letter can be either sent via email or hard copy.

Find out more here.

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